Are You Utilizing All of the Student Funding Resources Available?
When most students think of financial aid, they think of federal loans that are available through the FAFSA (Free Application for Federal Student Aid). While federal loans are certainly the most common choice among students, many times those loans don't cover the entire cost of tuition. Before you give up on your top college choices try tapping into these three other lesser known sources of financial aid:
State Government Student Loans
Unlike the FAFSA application that is the same for all 50 states, some states may require a completely different application to apply for state government loans. While some states use the information in the FAFSA application for state loan consideration, other require a completely separate application. Furthermore, each state may require one application if you plan to attend a public college and a different application if your college is private.
If you're unsure about which state government loan application to complete, contact the school that you plan to attend. If you haven't made a choice yet and are deciding between a public and private school, be sure to check with both schools as each type may require a separate application.
State loans can be tricky if you live in one state but plan to attend college in another state. In which state should you apply for the loan? Start by contacting your home state. By doing a search online for "(your state) student loans," you can find information about which department to contact for more information.
Private Education Loans
Private educations loans may be the first place that students turn after federal student loans because these types of loans are often advertised on TV and through direct mail - but that doesn't mean that this is the wisest choice. Depending on the lender you choose, private student loans can be much more expensive than government loans because of expensive origination fees and other fees. Furthermore, these loans are often secured loans, meaning that you may need a cosigner who can offer collateral in case you fail to pay back the loan.
Another thing to consider about private student loans is that they cannot be consolidated with federal loans after graduation. Also, many private student loans don't have the same perks in terms of deferment options and flexible repayment plans.
Private student loans can be a smart choice if you choose a good reputable lender. Just like when choosing a credit card, you'll want to do your research to ensure that you are securing private student loans with a lender that is fair and offers as many benefits as possible.
Scholarships and Grants Through Your College or University
You may be surprised at the number of scholarships available through your college. If you haven't decided on a college yet, the types of scholarships and grants available through different schools may be a big factor in your decision process. To find out what types of scholarships your college or perspective college offers, visit the financial aid section of the school's website or call the financial aid department. Many scholarships are available through the academic office of your major. Don't forget to visit your particular academic office's website or contact the department by phone.
If you are applying for several colleges, you may want to fill out a College Scholarship Service Profile, also known as a CSS profile. The CSS profile is often used by private institutions as a way to get a clearer picture of a student's finances. The CSS profile does include a fee, so you'll want to check with the colleges you are considering to see if they consider the CSS profile before taking this step.